Overcharging banks – Consumers suffer again

A SURVEY, compiled by ValueIreland.com since July 2004, indicates a range of banks, service providers, and insurance companies have been exposed as overcharging 1.6 million Irish customers by at least €623,943,892, over the past four years.

In April 2005, Bank of Ireland admitted that it had not refunded customers who had overpaid for insurance cover on car loans.

It estimated that there were a total of 65,000 loans involved in that error. It agreed to refund all the customers a total of €15m.

In May of this year, Bank of Ireland announced it was refunding about €200,000 to 16,000 holders of child saving accounts.

The bank has agreed to repay the money after an incorrect interest rate was paid on the savings accounts between May 2003 and February 2008.

Ulster Bank admitted in August of last year that it overcharged clients by not refunding about 25,000 borrowers almost €4m that they were due on insurance policies after they had repaid loans early.

Abuses at AIB had previously been detailed.

Over the past four years, Irish consumers have been ripped off by the banks to an extent that the term bank robbery has been given a whole new meaning.